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Nearly one in three large firms report worsened financial conditions in 2025, poll finds

Published: 06 Mar. 2025, 09:59 Updated: 06 Mar. 2025, 14:14

The Federation of Korean Industries building in Seoul [YONHAP]

Nearly 1 in 3 large companies in Korea have reported a deterioration in their financial conditions this year compared with 2024, a survey released Thursday showed.

The survey conducted by Mono Research on the country's top 1,000 firms in terms of sales found that 31 percent of the respondents said their financial conditions worsened this year, while 11 percent reported improvements.

In the poll, commissioned by the Federation of Korean Industries (FKI), the remaining 58 percent responded that their financial situation remained similar to that of last year.

The sectors most affected by financial difficulties were construction and civil engineering at 50 percent, followed by metals and steel at 45.5 percent and petrochemicals at 33.3 percent.

The FKI noted these sectors have experienced prolonged economic downturns due to weakening demand and global oversupply, making capital procurement increasingly difficult.

Foreign exchange rate volatility was cited as the most significant element negatively impacting financial conditions at 24.3 percent, followed by rising raw material prices at 23 percent and interest rate burdens at 17.7 percent.

Yonhap